USD/JPY 240 min Swing with Fibo Level Resistance Identified

There are a number of ways to identify corrections whether it be psychological price levels, pivots, the 34ema Wave or Fiboancci levels.  While this list is far from exhaustive, Fibonacci analysis is as powerful as it is often misunderstood.

The idea behind identifying support or resistance with Fibonacci analysis lies in the most recent sell-off or rally also known as the “last major move”.  There is no template or formula to find a last major move which makes Fiboancci analysis very subjective.  However with practice these level will soon pop out on a chart.

In this example of the current view of the USD/JPY, with a mark down cycle, the objective is to locate resistance levels where price is most likely to exhaust on a bounce.  The balancing act comes with understanding what is a significant enough bounce (correction) without taking a move that is too shallow.

The most likely level would be a bounce to the 34ema low and the 50% near the 91.50 area.  This is also overlapping a psychological level.  Keep an eye on 91.50 for exhaustion as long as the mark down cycle in intact.